Ski resort operator completes financial restructuring
NEWRY, Maine (AP) – Debt-ridden American Skiing Co. said Tuesday it has completed a financial restructuring that includes an additional $30 million investment by its majority shareholder, Oak Hill Capital Partners.
The restructuring plan, announced in July, was designed to raise capital, amend loan agreements and restructure debt.
The Newry-based company also plans to sell its Steamboat resort in Colorado to help reduce debt incurred during a major expansion that coincided with two disappointing ski seasons.
Mark Miller, American Skiing’s chief financial officer, said the restructuring resolves all outstanding construction and payment disputes associated with the Steamboat Grand Hotel and allows construction on luxury penthouses to begin immediately.
The company’s strategic plan does not include other asset sales, but officials have not ruled them out.
”The financial restructuring package, coupled with cost savings initiatives implemented earlier in the year, is an important step as we address our immediate financial issues and set the stage to unlock the growth potential of our resort and real estate assets,” Miller said.
In addition to Steamboat, American Skiing’s properties include Heavenly Ski Resort along the California-Nevada line; Sugarloaf USA and Sunday River in Maine; Attitash Bear Peak in New Hampshire; Killington, Mount Snow and Sugarbush in Vermont; and The Canyons in Utah.
American Skiing’s stock closed Friday below $1 a share and has not earned an annual profit since it went public in late 1997 at $18. Its founder, Leslie B. Otten, resigned earlier this year after a merger agreement with Meristar Hotels & Resorts was called off.
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